Share this article
Back at $13K: Bitcoin Unfazed by Profit Takers After Rise to 2020 High
The bitcoin market looks to be shrugging off increased selling pressure from profit takers after prices surged this week.
Updated Sep 14, 2021, 10:22 a.m. Published Oct 22, 2020, 11:19 a.m.
The bitcoin (BTC) market looks to be shrugging off increased selling pressure from profit takers after prices surged this week.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- On Wednesday, bitcoin jumped over 7% to hit 15-month highs above $13,000 after payments giant PayPal (ticker: PYPL) announced support for cryptocurrencies.
- Cryptocurrency exchanges tracked by blockchain intelligence firm Chainalysis received a total of 106,519 BTC on Wednesday, the highest daily inflow since Oct. 2. A similar spike was observed on Sept. 4.
- That could be a concern for bulls, as flows to exchanges often precede sell-offs.
- "The pickup in exchange inflows indicates some investors rushed to liquidate their holdings (take profit) in the rising market," Philip Gradwell, chief economist at Chainalysis, told CoinDesk over WhatsApp.
- However, there's reason to believe that any higher levels of sales were absorbed Wednesday, as bitcoin's trade intensity (a measure of how many times an inflowing coin is traded) jumped to a two-month high of 5.8. That's more than double the 90-day average.
- Each of the 106,519 bitcoins sent to exchanges yesterday was traded on average 5.8 times, meaning the market had capacity to absorb the sales.
- "While people are taking advantage of high prices, they are being outweighed by buyers," Gradwell said.
- As such, the ongoing price rally looks to have legs. Bitcoin is currently trading around $13,020, having witnessed a pullback from $13,230 in the past 12 hours, according to CoinDesk's Bitcoin Price Index.
- So far today, about 30,000 BTC have been transferred to exchanges, Gradwell noted.
- Going forward, there's likely to be no shortage of buyers amid the optimism generated by PayPal's move into crypto services and increasing institutional participation.
- "2020 is fast becoming the year of crypto acceptance and we see 2021 as the year of mainstream adoption," Constantin Kogan, managing director at Wave Financial Group, told CoinDesk in an email.
- Bitcoin will maintain "a strong bullish trend and rise beyond $14,000 by the year's end," he said.
Also read: PayPal Embraces Crypto, Igniting Market as Mainstream Adoption Inches Closer
More For You
Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
More For You
Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
알아야 할 것:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
Top Stories
